Imagine preparing for Prime Day sales when suddenly, an email from Amazon threatens account suspension due to "unverifiable product origins." This scenario reflects Amazon's increasingly strict compliance policies as the marketplace announces a new "Stolen Goods Sales Policy" taking effect June 30.
The policy represents Amazon's response to evolving government regulations targeting illegal merchandise transactions on e-commerce platforms. The initiative aims to protect marketplace integrity and consumer rights through unprecedented scrutiny of sellers' supply chains.
Severe Penalties for Violations
According to Amazon's official announcement, sellers found violating the policy face:
- Immediate product removal
- Sales privilege revocation
- Account fund freezing
- Mandatory FBA inventory disposal (at seller's expense)
- Potential legal consequences
Sellers must submit comprehensive "responsible sourcing" documentation including:
- 12-month sales records
- Complete supply chain details
- Manufacturer information with contact verification
Policy Drivers: "Zero-Dollar Shopping" Epidemic
Industry reports link this policy shift to escalating "zero-dollar shopping" incidents across the U.S., where criminals resell merchandise obtained through theft or fraud via secondary markets and legitimate e-commerce platforms. Several jurisdictions have enacted laws requiring platforms to verify high-risk merchandise origins.
Amazon's policy focuses on two critical aspects:
- End-to-End Supply Chain Traceability: Clear product journey documentation from origin to consumer
- Legal Sourcing Compliance: Elimination of merchandise from unlawful channels
Key Verification Requirements
Amazon's audits will concentrate on three primary documentation types:
1. Valid VAT Invoices
Must be issued within 365 days with complete information including:
- Full names and addresses of both parties
- Tax identification numbers
- Accurate product specifications (model numbers, quantities, unit prices)
2. Supplier Credentials
Mandatory submission of:
- Business licenses
- Import/export permits
- Other officially verified documents
3. Brand Authorization Chains
For brand-name products, sellers must provide:
- Complete authorization documentation
- Verified relationships with brand owners
Seller Concerns and Risk Factors
The announcement has sparked concerns about potential false positives, as Amazon retains final interpretation rights regarding product origins. Industry analysts suggest the platform may use multiple indicators to flag suspicious merchandise, including:
- IP derivative products
- High return rates
- Frequent listing modifications
- Extreme price fluctuations
Responding to Compliance Notices
For sellers receiving audit notifications, experts recommend:
- Conduct immediate self-audits for potential policy violations
- Remove questionable listings and submit corrective action plans if violations exist
- Prepare comprehensive documentation (third-party test reports, customs records, authorization letters) for appeals if disputing Amazon's findings
With Prime Day approaching, sellers are advised to thoroughly review supply chains, eliminate non-compliant vendors, and organize documentation to avoid account disruptions during the critical sales period.